Tether's Resilience Amid Redemption Waves Compared to Traditional Banks

According to PANews, crypto analyst Willy Woo has released a comparative analysis highlighting Tether's (USDT) performance during redemption waves in 2022. Despite experiencing approximately 20–25% redemptions, Tether managed full payouts, outperforming traditional banks such as Silicon Valley Bank, which faced a 25% redemption, and First Republic Bank, which encountered a 57% redemption. Woo emphasized that Tether currently holds 77% of its assets in cash equivalents, with the remainder in gold and Bitcoin, maintaining a total over-collateralization of 3%. Even if volatile assets were to plummet by 30% in extreme market conditions, USDT would still have 95% asset backing.